Wells Fargo & Company Has Lowered Expectations for Verizon Communications (NYSE:VZ) Stock Price

Key Points

• Wells Fargo cut its price target on Verizon from $43 to $41 and kept an "equal weight" rating, implying only about a 3.6% upside from the prior close.
• Analyst sentiment is mixed: MarketBeat shows a consensus of "Moderate Buy" with an average target of $46.93, but several brokers have recently trimmed ratings or targets while a few have raised theirs.
• Verizon is trading around $39.60 (52-week range $38.39–$47.35) with a market cap near $167B and a P/E of 8.47, providing valuation context for investors.

Verizon Communications (NYSE:VZ - Get Free Report) had its target price reduced by stock analysts at Wells Fargo & Company from $43.00 to $41.00 in a note issued to investors on Monday,Benzinga reports. The brokerage currently has an "equal weight" rating on the cell phone carrier's stock. Wells Fargo & Company's price target suggests a potential upside of 3.55% from the company's previous close.

Other research analysts also recently issued reports about the company. BNP Paribas Exane downgraded Verizon Communications from an "outperform" rating to a "neutral" rating and set a $44.00 price target on the stock. in a research report on Tuesday, October 21st. Barclays initiated coverage on shares of Verizon Communications in a research note on Thursday. They issued an "equal weight" rating and a $43.00 price objective on the stock. JPMorgan Chase & Co. cut their target price on shares of Verizon Communications from $49.00 to $47.00 and set a "neutral" rating for the company in a research note on Thursday, October 30th. Scotiabank raised their price target on shares of Verizon Communications from $50.50 to $51.00 and gave the stock a "sector perform" rating in a research report on Thursday, October 30th. Finally, Morgan Stanley dropped their price objective on shares of Verizon Communications from $48.00 to $47.00 and set an "equal weight" rating on the stock in a report on Wednesday, December 10th. Two equities research analysts have rated the stock with a Strong Buy rating, six have assigned a Buy rating and twelve have given a Hold rating to the company. According to MarketBeat.com, Verizon Communications currently has a consensus rating of "Moderate Buy" and an average target price of $46.93.

Verizon Communications Stock Performance

Shares of Verizon Communications stock traded up $0.08 on Monday, reaching $39.60. The stock had a trading volume of 7,319,598 shares, compared to its average volume of 28,259,059. Verizon Communications has a fifty-two week low of $38.39 and a fifty-two week high of $47.35. The business's 50-day moving average price is $40.37 and its two-hundred day moving average price is $41.61. The company has a debt-to-equity ratio of 1.19, a quick ratio of 0.69 and a current ratio of 0.74. The stock has a market cap of $166.95 billion, a P/E ratio of 8.47, a price-to-earnings-growth ratio of 3.77 and a beta of 0.34.

Verizon Communications (NYSE:VZ - Get Free Report) last announced its earnings results on Wednesday, October 29th. The cell phone carrier reported $1.21 EPS for the quarter, topping the consensus estimate of $1.19 by $0.02. Verizon Communications had a net margin of 14.43% and a return on equity of 19.31%. The firm had revenue of $33.82 billion for the quarter, compared to the consensus estimate of $34.19 billion. During the same quarter last year, the firm posted $1.19 EPS. The business's quarterly revenue was up 1.5% on a year-over-year basis. On average, sell-side analysts forecast that Verizon Communications will post 4.69 EPS for the current year.

Institutional Investors Weigh In On Verizon Communications

Several large investors have recently made changes to their positions in VZ. Advantage Trust Co increased its holdings in shares of Verizon Communications by 549.5% during the second quarter. Advantage Trust Co now owns 591 shares of the cell phone carrier's stock worth $26,000 after buying an additional 500 shares in the last quarter. TruNorth Capital Management LLC grew its position in Verizon Communications by 95.3% during the 3rd quarter. TruNorth Capital Management LLC now owns 625 shares of the cell phone carrier's stock worth $27,000 after acquiring an additional 305 shares during the last quarter. Holos Integrated Wealth LLC bought a new stake in Verizon Communications during the 4th quarter worth approximately $28,000. Foster Dykema Cabot & Partners LLC acquired a new stake in Verizon Communications during the 3rd quarter valued at $29,000. Finally, RMG Wealth Management LLC bought a new position in Verizon Communications in the 2nd quarter valued at $30,000. Institutional investors own 62.06% of the company's stock.

About Verizon Communications

Verizon Communications Inc NYSE: VZ is a major U.S.-based telecommunications company that provides a broad range of communications and information services. Its operations span consumer and business markets, with core offerings that include wireless voice and data services, fixed-line broadband and fiber-optic services, and enterprise networking solutions. Verizon is headquartered in New York City and operates a nationwide wireless network that supports consumer subscribers as well as business and government customers.

The company's consumer products include mobile phone plans, unlimited data services, and Fios, its branded fiber-optic internet, television and voice service for homes and small businesses.

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